Source: Oleoscope (Russia)
The Egyptian State Food Procurement Authority (GASC) is negotiating the purchase of large quantities of wheat directly and without international tenders. This was reported by the Reuters news agency, citing European and Middle Eastern traders.
According to the news agency’s sources, up to 30 batches of 50-60 thousand tons each are to be delivered. It concerns Russian wheat, but it is still unclear whether products from other countries will also be considered. According to the agency, United Grain Co (UGC) (United Grain Company) and Demetra-Holding could supply Russian wheat under possible agreements.
According to traders, initial price talks on Tuesday were around 248 US dollars per ton FOB, with a deferred payment of about 270 days.
Previously, GASC had announced the largest international tender for 3.8 million tons of milling wheat in the history of observation, betting on falling prices, but missed its target. At the end of the tender, only 280,000 tons of wheat from Ukraine and Bulgaria had been contracted. The offer prices were 241 US dollars per ton FOB for Ukrainian wheat and 242.25 US dollars per ton FOB for Bulgarian wheat with a payment extension of 270 days.
Egypt, one of the world’s largest wheat importers, has been struggling with high inflation for two years and has taken austerity measures to reduce costs, including the first price increase for subsidized bread in ten years. The country relies heavily on wheat imports to supply tens of millions of citizens with subsidized bread.
It had previously been announced that wheat deliveries from Russia to Egypt had risen by 20% this year. Last year, Russia covered around 70% of Egypt’s demand for wheat, more than 60% for sunflower oil and more than 35% for soybean oil.